Century Aluminum Company (CENX)
Interest coverage
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 31,800 | -27,900 | -55,200 | -204,000 | -150,200 | -69,200 | 22,600 | 184,200 | 66,000 | 2,300 | -75,900 | -113,000 | -80,500 | -69,100 | -47,600 | -39,100 | -66,400 | -127,100 | -123,700 | -79,900 |
| Interest expense (ttm) | US$ in thousands | 35,500 | 35,000 | 33,700 | 30,700 | 29,300 | 27,600 | 26,400 | 28,400 | 30,400 | 32,700 | 35,500 | 34,200 | 31,600 | 28,300 | 24,400 | 23,800 | 22,900 | 22,900 | 22,900 | 22,700 |
| Interest coverage | 0.90 | -0.80 | -1.64 | -6.64 | -5.13 | -2.51 | 0.86 | 6.49 | 2.17 | 0.07 | -2.14 | -3.30 | -2.55 | -2.44 | -1.95 | -1.64 | -2.90 | -5.55 | -5.40 | -3.52 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $31,800K ÷ $35,500K
= 0.90
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates a better ability to cover interest expenses.
Century Aluminum Company's interest coverage ratio fluctuated over the periods provided. It ranged from a low point of -6.64 in March 2023 to a high of 6.49 in March 2022.
In recent periods, the interest coverage ratio has mostly been below 1, indicating that the company's operating income was not sufficient to cover its interest expenses. This implies a heightened risk of financial distress due to potential difficulties in meeting interest obligations.
It is important for investors and creditors to monitor Century Aluminum Company's interest coverage ratio closely to assess the company's financial health and ability to service its debt obligations. A sustained low interest coverage ratio could raise concerns about the company's financial stability and ability to meet its debt obligations in the long term.
Peer comparison
Dec 31, 2023